PFC says rising inflation, energy costs and weak demand hurt industrial activity
LAHORE: The Pakistan Furniture Council has expressed concern over the sharp rise in inflation, warning that sustained increases in fuel, electricity and essential food prices are further weakening consumer demand and increasing production costs for the manufacturing sector.
PFC Director Shahbaz Aslam said the latest inflation figures reflect a difficult economic environment for both households and businesses, as cost pressures continue to rise across energy and food categories.
Official data shows short-term inflation, measured through the Sensitive Price Index (SPI), increased by 14.52 per cent year-on-year in the week ending May 14, driven largely by higher prices of fuel, electricity charges and essential food items.
The SPI data indicates a sharp increase in key items including petrol, diesel, electricity charges, wheat flour and LPG, while food prices such as onions, tomatoes, potatoes, beef and mutton also recorded notable increases.
Analysts say the rise in energy prices is a key driver of overall inflation, as fuel and electricity costs directly impact transport, manufacturing and supply chains, ultimately passing higher costs on to consumers.
On a year-on-year basis, petrol prices rose by more than 64 per cent, diesel by over 61 per cent, while electricity charges increased by more than 52 per cent. Wheat flour prices also surged significantly, reflecting combined pressure from energy costs and supply chain inefficiencies.
Business representatives said such persistent inflation is severely impacting industrial operations, particularly small and medium enterprises, which are already facing high input costs and weak purchasing power in the domestic market.
The Pakistan Furniture Council said the furniture and allied industries are particularly affected by rising electricity tariffs, transportation costs and declining consumer demand, which is slowing down production cycles and reducing sales volumes.
